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ICT AND ECONOMIC COMPLEXITY IN SAUDI ARABIA: PATHWAYS TO ECONOMIC DIVERSIFICATION UNDER VISION 2030
Keywords:
Saudi Arabia, Vision 2030, economic diversification, economic complexity, knowledge-based economy, innovation ecosystem, digital transformation, information and communication technologyDOI:
https://doi.org/10.17654/0972361725051Abstract
This paper investigates the economic complexity drivers in Saudi Arabia through an analysis of the relationship between the Information and Communication Technology (ICT) component of the Global Innovation Index (GII) and the Economic Complexity Index (ECI) from 2011 to 2022. The research uses linear and polynomial regression models together with Granger causality testing to determine the direction and strength of this relationship. The research demonstrates a statistically significant positive relationship between ICT and ECI while showing that economic complexity leads ICT development instead of being its result. The results indicate that complex economies possess better capabilities to drive digital transformation through their institutional capacity and innovation ecosystems and human capital development. The research demonstrates that ICT strategies need to be integrated into national development agendas and structural reforms under Vision 2030 to establish a resilient diversified knowledge-based economy.
Received: April 22, 2025
Accepted: June 4, 2025
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